Business Law: Sources, Role of Government, Impact on Business, Types of Organizations, Dispute Resolution
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This report provides an overview of business law, including the different sources of law, the role of government in law making, and the potential impact of company, employment, and contract law on businesses. It also explores the legal formation of different types of business organizations and how they are managed and funded. Additionally, it recommends legal solutions for resolving disputes through alternate dispute resolution methods.
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Table of Contents
INTRODUCTION
Commercial legislation is a vast field of law which regulates the business. It is often
known as the branch of the civil law which regulates the issues of private and public law. It
generally governs the corporate contracts, sale and manufacture of the goods and hire practices.
It is important to make such legislations which can regulate the working of the businesses so that
smooth running is ensured and corporations are protected from the legal consequences in case of
non compliance (Clarkson and Miller, 2020). Laws evolve over the centuries and adopts the
changes as and when needed so that it can work with new technologies and behaviour of the
society. This report shall cover different sources of law, overview of the company, employment
and contract law and role of government in law making . moreover it will cover forms of
business organisation, its management and funds and different forms of alternate dispute
resolution.
TASK 1
P1 Explain the different sources of law.
The UK is mainly divided into three jurisdictions which involves England and Wales,
Northern Ireland and Scotland. Each of the jurisdiction have its own laws and court system but
there are many laws which apply in whole UK or may apply in one, two or three jurisdictions
(Keizer and Wevers, 2019). The common sources of law in UK are discussed below-
Primary source
Case laws- These are fundamental and primary source of law which includes the
decisions of the court. These are called the common law which are declared by the
judges. It has same validity and relevancy as the statutory law. It includes both
substantive and procedural rules which are derived from inherent jurisdiction of court. Legislations- The UK does not have the written Constitution rather it is wholly codified
and partly written. Parliament is the supreme law making authority in UK which enacts
laws which cannot be challenged in any court of law. Mainly, there are two types of
legislations, primary and delegated. The former are enacted by the Parliament and the
later is made by the authority of the Parliament.
Secondary source
Commercial legislation is a vast field of law which regulates the business. It is often
known as the branch of the civil law which regulates the issues of private and public law. It
generally governs the corporate contracts, sale and manufacture of the goods and hire practices.
It is important to make such legislations which can regulate the working of the businesses so that
smooth running is ensured and corporations are protected from the legal consequences in case of
non compliance (Clarkson and Miller, 2020). Laws evolve over the centuries and adopts the
changes as and when needed so that it can work with new technologies and behaviour of the
society. This report shall cover different sources of law, overview of the company, employment
and contract law and role of government in law making . moreover it will cover forms of
business organisation, its management and funds and different forms of alternate dispute
resolution.
TASK 1
P1 Explain the different sources of law.
The UK is mainly divided into three jurisdictions which involves England and Wales,
Northern Ireland and Scotland. Each of the jurisdiction have its own laws and court system but
there are many laws which apply in whole UK or may apply in one, two or three jurisdictions
(Keizer and Wevers, 2019). The common sources of law in UK are discussed below-
Primary source
Case laws- These are fundamental and primary source of law which includes the
decisions of the court. These are called the common law which are declared by the
judges. It has same validity and relevancy as the statutory law. It includes both
substantive and procedural rules which are derived from inherent jurisdiction of court. Legislations- The UK does not have the written Constitution rather it is wholly codified
and partly written. Parliament is the supreme law making authority in UK which enacts
laws which cannot be challenged in any court of law. Mainly, there are two types of
legislations, primary and delegated. The former are enacted by the Parliament and the
later is made by the authority of the Parliament.
Secondary source
Legal encyclopedia- These are the best point to start the research as it involves key
points, legislations and cases. It also contained detailed explanation of the laws which are
written by the leading academicians and lawyers.
Parliamentary and non Parliamentary publications- It includes debates of Parliament,
papers of the House of Commons and Lords. These are mainly debates and proceedings
of the Parliament which occurs when any legislation is being enacted (Beatty, Samuelson
and Abril, 2018).
P2 Explain the role of government in law making and how statutory and common law is applied
in the courts.
The Legislature is an organ of the government which is entrusted with the duty to pass
the law of government. Laws re the rules which is to be obeyed by the people in the country and
in a democratic country like UK, no one can be above the law. The Parliament enacts the law and
the process of law making undergoes many stages which is discussed below- First reading- A bill is proposed in the Parliament. It is a notice that a law is going to be
enacted and at this stage, the name of bill is called. Second reading- In this, the debate on purpose and other areas of bill is started. The
members discusses on the specific area where they think that changes can be made. No
votes take place at this stage. Committee stage- In this, scrutiny of bill is done together with changes which are
suggested. The members start the line by line scrutiny from the front and work till the
end. Votes are taken at this stage as to decide that whether the changes should be made or
not. Report stage- Another chance to analyse the bill is given and amendments are made.
These are discussed and debated and votes are taken to decide as to whether the changes
should be made or not. Third reading- In this stage, the loopholes of the bill is closed and final chance for
amendment is given. Votes are taken at this stage for the last time. Consideration of amendments- if the Commons have suggested the changes and is send
to Lords to agree. The Lords may accept the changes or make their own changes and vice
versa. It us also the ping pong stage (Haggard and Haggard, 2018).
points, legislations and cases. It also contained detailed explanation of the laws which are
written by the leading academicians and lawyers.
Parliamentary and non Parliamentary publications- It includes debates of Parliament,
papers of the House of Commons and Lords. These are mainly debates and proceedings
of the Parliament which occurs when any legislation is being enacted (Beatty, Samuelson
and Abril, 2018).
P2 Explain the role of government in law making and how statutory and common law is applied
in the courts.
The Legislature is an organ of the government which is entrusted with the duty to pass
the law of government. Laws re the rules which is to be obeyed by the people in the country and
in a democratic country like UK, no one can be above the law. The Parliament enacts the law and
the process of law making undergoes many stages which is discussed below- First reading- A bill is proposed in the Parliament. It is a notice that a law is going to be
enacted and at this stage, the name of bill is called. Second reading- In this, the debate on purpose and other areas of bill is started. The
members discusses on the specific area where they think that changes can be made. No
votes take place at this stage. Committee stage- In this, scrutiny of bill is done together with changes which are
suggested. The members start the line by line scrutiny from the front and work till the
end. Votes are taken at this stage as to decide that whether the changes should be made or
not. Report stage- Another chance to analyse the bill is given and amendments are made.
These are discussed and debated and votes are taken to decide as to whether the changes
should be made or not. Third reading- In this stage, the loopholes of the bill is closed and final chance for
amendment is given. Votes are taken at this stage for the last time. Consideration of amendments- if the Commons have suggested the changes and is send
to Lords to agree. The Lords may accept the changes or make their own changes and vice
versa. It us also the ping pong stage (Haggard and Haggard, 2018).
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Royal assent- When both the houses has agreed to the bill, it is send to Royal Monarch
for the approval. The Monarch gives assent to the bill in order to make it a law which is
enforced in whole of the Country.
How laws are applied in courts
The statutory law is the legislation made by supreme law making authority called the
Parliament and the common law is formed by judges through the decisions of the case. These are
applied by the judges on the cases so that justice can be prevailed. The courts have important role
to create the laws as they make new laws and interpret the existing law so that meaningful
conclusions can be drawn.
TASK 2
P3 Using specific examples illustrate how company, employment law and contract law has a
potential impact upon business.
The commercial law regulate the working of the business. Among all the legislation,
employment, contract and company law plays a major role in smooth functioning. They impact
the business and their potential impact is narrated below-
Company law
This law regulates incorporation of company and defines how the companies can conduct
its business. It comprises of the rules and regulations which regulate the rights of the
stakeholders so that they are given protection from the exploitation. As company is a separate
legal entity, it has its assets and liabilities so the law of company governs the wealth creation of
the company and helps in organizing the same as per the capital requirement. This law have a
potential impact on businesses as it controls the runn9ing of the corporations right from its
incorporation to its winding up (Nguyen and Tran, 2018) .
Employment law
This law is an umbrella which contains many legislation under it. It includes equality Act,
Employment rights Act, National minimum wages Act, Health and Safety at work, Act and many
other. The aim of this law is to protect rights of employees from being exploited. These
legislation states the rights of the employees, like for instance, the number of working hours,
equal pay for equal work and many other. This law impact the working of the business as it
regulate the relationship between the employees and business. By complying with these
for the approval. The Monarch gives assent to the bill in order to make it a law which is
enforced in whole of the Country.
How laws are applied in courts
The statutory law is the legislation made by supreme law making authority called the
Parliament and the common law is formed by judges through the decisions of the case. These are
applied by the judges on the cases so that justice can be prevailed. The courts have important role
to create the laws as they make new laws and interpret the existing law so that meaningful
conclusions can be drawn.
TASK 2
P3 Using specific examples illustrate how company, employment law and contract law has a
potential impact upon business.
The commercial law regulate the working of the business. Among all the legislation,
employment, contract and company law plays a major role in smooth functioning. They impact
the business and their potential impact is narrated below-
Company law
This law regulates incorporation of company and defines how the companies can conduct
its business. It comprises of the rules and regulations which regulate the rights of the
stakeholders so that they are given protection from the exploitation. As company is a separate
legal entity, it has its assets and liabilities so the law of company governs the wealth creation of
the company and helps in organizing the same as per the capital requirement. This law have a
potential impact on businesses as it controls the runn9ing of the corporations right from its
incorporation to its winding up (Nguyen and Tran, 2018) .
Employment law
This law is an umbrella which contains many legislation under it. It includes equality Act,
Employment rights Act, National minimum wages Act, Health and Safety at work, Act and many
other. The aim of this law is to protect rights of employees from being exploited. These
legislation states the rights of the employees, like for instance, the number of working hours,
equal pay for equal work and many other. This law impact the working of the business as it
regulate the relationship between the employees and business. By complying with these
legislation, the employers can ensure that they have followed the fair procedure in hiring,
dismissal or any other. It also ensures that the discrimination is prevented in the workplace and
each person gets fair opportunity. Te employees have also the right to have employment contract
so that all their rights are embodied in it and they can get fair and healthy environment at the
workplace (Favarel-Garrigues, 2020).
Contract law
The businesses are required to enter into transactions as they are either engaged in
providing any service or a product, which means that they have to either purchase or resell the
product or service. So contract law affect the businesses as these transactions are regulated by the
contract so that binding effect can be given to them and any fraud can be prohibited or prevented.
The contract law regulates the conduct, rights, duties and relations of the parties who have been
engaged in any business through the valid contract. The rules of the law of contract have a
potential impact on the business as it narrow down their scope to deal work beyond the law and
gives them right to claim remedy in case of breach of contract.
TASK 3
P4 Explore how different types of business organisations are legally formed. Sole proprietorship- It is the most simple form of business to register. It involves a sole
owner who manages the day to day operations of business. The owner of the business is
made personally liable for all the debts and liability as it is not a legal entity which have
its own rights. The process of registering the sole proprietor involves a registration with
the HMRC and no registration at the Companies House is necessary. It requires minimum
set up and the administration and is suitable mainly for small businesses as it does not
involve huge cost for registration and very few formality is involved (Augenstein 2018). Partnerships- In this type of business, there are 2 or more persons involves who are
called the partners. They mutually decide to share the profit, loss, capital, decision-
making and responsibility. There includes mainly two kinds of partnerships of which first
is general partnership in which the partners have an unlimited liability for the debt and
liability as they can be made personally bound for it. Its formation involves registration
with HMRC only and a agreement is necessary. Another form of partnership is limited
liability partnership where the partners have limited liability to the extent of their
dismissal or any other. It also ensures that the discrimination is prevented in the workplace and
each person gets fair opportunity. Te employees have also the right to have employment contract
so that all their rights are embodied in it and they can get fair and healthy environment at the
workplace (Favarel-Garrigues, 2020).
Contract law
The businesses are required to enter into transactions as they are either engaged in
providing any service or a product, which means that they have to either purchase or resell the
product or service. So contract law affect the businesses as these transactions are regulated by the
contract so that binding effect can be given to them and any fraud can be prohibited or prevented.
The contract law regulates the conduct, rights, duties and relations of the parties who have been
engaged in any business through the valid contract. The rules of the law of contract have a
potential impact on the business as it narrow down their scope to deal work beyond the law and
gives them right to claim remedy in case of breach of contract.
TASK 3
P4 Explore how different types of business organisations are legally formed. Sole proprietorship- It is the most simple form of business to register. It involves a sole
owner who manages the day to day operations of business. The owner of the business is
made personally liable for all the debts and liability as it is not a legal entity which have
its own rights. The process of registering the sole proprietor involves a registration with
the HMRC and no registration at the Companies House is necessary. It requires minimum
set up and the administration and is suitable mainly for small businesses as it does not
involve huge cost for registration and very few formality is involved (Augenstein 2018). Partnerships- In this type of business, there are 2 or more persons involves who are
called the partners. They mutually decide to share the profit, loss, capital, decision-
making and responsibility. There includes mainly two kinds of partnerships of which first
is general partnership in which the partners have an unlimited liability for the debt and
liability as they can be made personally bound for it. Its formation involves registration
with HMRC only and a agreement is necessary. Another form of partnership is limited
liability partnership where the partners have limited liability to the extent of their
contribution in capital. The formation of it involves registration with Companies House
and HMRC.
Companies- These are separate legal entity which have its own common seal. The
companies are required to get itself registered at the Companies House and involves a
lengthy procedure to incorporate the company. Moreover, the incorporation involves
huge cost and time for filing of documents as well. There are basically two kinds of
company, one is public company which involves raising share capital through the
invitation of application and the private company involves raising capital only through
equity or debt. Another two types of companies are limited liability company in which the
liability of the owners is limited to an extent of share and an unlimited liability company
includes personality liability of owners as they may be held personally bound to repay
the debts and liability as a whole of the company (Davis and Geyfman 2017).
P5 Explain how business organizations are managed and funded.
The business organizations are managed and funded according to their business type. The
management and funding of the businesses are discussed below- Sole proprietorship- This type of business organisation is carried on by its single owner
who is with the responsibility to manage the daily operations of the business. The owner
may raise the funds either by the bank loans or through its savings as it is mainly suitable
for the small businesses. Partnership- In this, there are two or more persons involves who manage the day to day
affairs of the firm. The partners mutually decide the management of the firm through
their agreement and the capital is contributed by them according to their share of profit or
loss. They may raise the funds either through their personal savings or through the bank
loans.
Companies- These are managed in accordance with their types of company. For instance,
in public company, the shareholders appoint the board of directors who represent their
interest and manage the daily operations and in case of private company, the directors are
entrusted with the duty to manage the daily operations. The public company may raise
the funds through the inviting application to issue shares and the private company may
raise the funds from equity and debt (Heaton, 2017).
and HMRC.
Companies- These are separate legal entity which have its own common seal. The
companies are required to get itself registered at the Companies House and involves a
lengthy procedure to incorporate the company. Moreover, the incorporation involves
huge cost and time for filing of documents as well. There are basically two kinds of
company, one is public company which involves raising share capital through the
invitation of application and the private company involves raising capital only through
equity or debt. Another two types of companies are limited liability company in which the
liability of the owners is limited to an extent of share and an unlimited liability company
includes personality liability of owners as they may be held personally bound to repay
the debts and liability as a whole of the company (Davis and Geyfman 2017).
P5 Explain how business organizations are managed and funded.
The business organizations are managed and funded according to their business type. The
management and funding of the businesses are discussed below- Sole proprietorship- This type of business organisation is carried on by its single owner
who is with the responsibility to manage the daily operations of the business. The owner
may raise the funds either by the bank loans or through its savings as it is mainly suitable
for the small businesses. Partnership- In this, there are two or more persons involves who manage the day to day
affairs of the firm. The partners mutually decide the management of the firm through
their agreement and the capital is contributed by them according to their share of profit or
loss. They may raise the funds either through their personal savings or through the bank
loans.
Companies- These are managed in accordance with their types of company. For instance,
in public company, the shareholders appoint the board of directors who represent their
interest and manage the daily operations and in case of private company, the directors are
entrusted with the duty to manage the daily operations. The public company may raise
the funds through the inviting application to issue shares and the private company may
raise the funds from equity and debt (Heaton, 2017).
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TASK 4
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.
Whenever any dispute arise, the parties to the dispute refer the matter to the court for
litigation. It is a time consuming and expensive method of resolving any issue. Apart from
litigation, there are many other forms of alternate dispute resolution of which the parties may opt
for one.
The Civil Procedures Rules of 1986 provides the different alternate dispute resolution
which gives speedy disposal of case and involves less cost. In the case scenario, Jay and Alex
have referred the matter for litigation but it involves 350 pounds per hour, which is very
expensive. So they may opt for any one of the method which is discussed below- Arbitration- It is the most effective form of alternate dispute resolution. It involves
appointing an independent and unbiased arbitrator who after hearing the facts of case and
examining the evidence passes the award which have binding effect on the parties. The
parties are free to choose the time and place of the arbitration and the arbitrator is also
appointed by the parties mutually. In case any party does not obey with the award of the
arbitration, the court may intervene and order the parties to adhere with the award. It
involves less time and cost as compared to litigation. Mediation- in this, an independent and unbiased mediator is appointed who after hearing
the parties, provide the suggestions. There is decision which comes out from the
proceedings of mediation, rather opinions and suggestions are given by the mediator. It is
not binding on the parties. Conciliation- it is one of the effective method of solving the dispute as it involves
appointing an independent conciliator who hears the parties and examines the evidence.
After doing so, it provides suggestions to the parties. The parties may give their own
suggestions or may opt for the suggestion of conciliator. This is called the settlement and
once the parties sign the settlement, it is binding on the parties. The parties can appoint
maximum three conciliator for solving their dispute.
Negotiation- in this type of dispute resolution, the parties appoint an impartial negotiator
who hears the parties and give an amicable solution to it. The main purpose of this is to
bring the parties at win win situation so that both parties gets something and no one
P6 Recommend legal solutions for resolving a range of disputes using examples to demonstrate
how a party might obtain legal advice and support.
Whenever any dispute arise, the parties to the dispute refer the matter to the court for
litigation. It is a time consuming and expensive method of resolving any issue. Apart from
litigation, there are many other forms of alternate dispute resolution of which the parties may opt
for one.
The Civil Procedures Rules of 1986 provides the different alternate dispute resolution
which gives speedy disposal of case and involves less cost. In the case scenario, Jay and Alex
have referred the matter for litigation but it involves 350 pounds per hour, which is very
expensive. So they may opt for any one of the method which is discussed below- Arbitration- It is the most effective form of alternate dispute resolution. It involves
appointing an independent and unbiased arbitrator who after hearing the facts of case and
examining the evidence passes the award which have binding effect on the parties. The
parties are free to choose the time and place of the arbitration and the arbitrator is also
appointed by the parties mutually. In case any party does not obey with the award of the
arbitration, the court may intervene and order the parties to adhere with the award. It
involves less time and cost as compared to litigation. Mediation- in this, an independent and unbiased mediator is appointed who after hearing
the parties, provide the suggestions. There is decision which comes out from the
proceedings of mediation, rather opinions and suggestions are given by the mediator. It is
not binding on the parties. Conciliation- it is one of the effective method of solving the dispute as it involves
appointing an independent conciliator who hears the parties and examines the evidence.
After doing so, it provides suggestions to the parties. The parties may give their own
suggestions or may opt for the suggestion of conciliator. This is called the settlement and
once the parties sign the settlement, it is binding on the parties. The parties can appoint
maximum three conciliator for solving their dispute.
Negotiation- in this type of dispute resolution, the parties appoint an impartial negotiator
who hears the parties and give an amicable solution to it. The main purpose of this is to
bring the parties at win win situation so that both parties gets something and no one
looses anything. The suggestion of the negotiator is not binding until the parties sign the
negotiation agreement (Bargfrede, 2017).
CONCLUSION
It is summarised from the report that business law is a wide field which have number of
legislations under this. The UK law is derived from two sources which are primary and
secondary source. There are many two types of laws prevailing in the country of which one is
common law and the other is statutory law. The Parliament is the supreme law making authority
which enacts the laws by undergoing the process of stages. Moreover there are business laws like
employment, company and contract which have the potential impact on the running of the
business. Further it is concluded that there are different types of business organisations which
involves, partnership, sole proprietorship and companies which are managed and funded
according to their type. Also there are different alternate dispute resolution, apart from litigation
which may be opted by the parties to get the speedy disposal of cases. These include arbitration,
negotiation, conciliation and mediation.
negotiation agreement (Bargfrede, 2017).
CONCLUSION
It is summarised from the report that business law is a wide field which have number of
legislations under this. The UK law is derived from two sources which are primary and
secondary source. There are many two types of laws prevailing in the country of which one is
common law and the other is statutory law. The Parliament is the supreme law making authority
which enacts the laws by undergoing the process of stages. Moreover there are business laws like
employment, company and contract which have the potential impact on the running of the
business. Further it is concluded that there are different types of business organisations which
involves, partnership, sole proprietorship and companies which are managed and funded
according to their type. Also there are different alternate dispute resolution, apart from litigation
which may be opted by the parties to get the speedy disposal of cases. These include arbitration,
negotiation, conciliation and mediation.
REFERENCES
Books and Journals
Augenstein, D., 2018. Negotiating the Hard/Soft Law Divide in Business and Human Rights:
The Implementation of the UNGP s in the European Union. Global Policy. 9(2).
pp.254-263.
Bargfrede, A., 2017. Music Law in the Digital Age: Copyright Essentials for Today's Music
Business. Hal Leonard Corporation.
Beatty, J.F., Samuelson, S.S. and Abril, P., 2018. Essentials of Business Law. Cengage Learning.
Clarkson, K.W. and Miller, R.L., 2020. Business law: Text and cases. Cengage Learning.
Davis, L.M. and Geyfman, V., 2017. The Business of Title IX-Using the Law to Improve
Gender Equity in Undergraduate Colleges of Business. JL & Educ. 46. p.163.
Favarel-Garrigues, G., 2020. Digital vigilantism and anti-paedophile activism in Russia.
Between civic involvement in law enforcement, moral policing and business
venture. Global Crime. 21(3-4). pp.306-326.
Haggard, D.L. and Haggard, K.S., 2018. The impact of law, religion, and culture on the ease of
starting a business. International Journal of Organization Theory & Behavior.
Heaton, J.B., 2017. The" Long Term" in Corporate Law. The Business Lawyer. 72(2). pp.353-
366.
Keizer, J. and Wevers, H., 2019. A Basic Guide to International Business Law. Routledge.
Nguyen, L.D. and Tran, Q.H., 2018. Working adults and personal business ethics in South East
Asia: A comparative study in Thailand and Vietnam. Public Organization
Review. 18(2). pp.159-174.
Books and Journals
Augenstein, D., 2018. Negotiating the Hard/Soft Law Divide in Business and Human Rights:
The Implementation of the UNGP s in the European Union. Global Policy. 9(2).
pp.254-263.
Bargfrede, A., 2017. Music Law in the Digital Age: Copyright Essentials for Today's Music
Business. Hal Leonard Corporation.
Beatty, J.F., Samuelson, S.S. and Abril, P., 2018. Essentials of Business Law. Cengage Learning.
Clarkson, K.W. and Miller, R.L., 2020. Business law: Text and cases. Cengage Learning.
Davis, L.M. and Geyfman, V., 2017. The Business of Title IX-Using the Law to Improve
Gender Equity in Undergraduate Colleges of Business. JL & Educ. 46. p.163.
Favarel-Garrigues, G., 2020. Digital vigilantism and anti-paedophile activism in Russia.
Between civic involvement in law enforcement, moral policing and business
venture. Global Crime. 21(3-4). pp.306-326.
Haggard, D.L. and Haggard, K.S., 2018. The impact of law, religion, and culture on the ease of
starting a business. International Journal of Organization Theory & Behavior.
Heaton, J.B., 2017. The" Long Term" in Corporate Law. The Business Lawyer. 72(2). pp.353-
366.
Keizer, J. and Wevers, H., 2019. A Basic Guide to International Business Law. Routledge.
Nguyen, L.D. and Tran, Q.H., 2018. Working adults and personal business ethics in South East
Asia: A comparative study in Thailand and Vietnam. Public Organization
Review. 18(2). pp.159-174.
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